Yearn.Finance price about to rebound as the DeFi protocol reports net income of $3.8 million


  • Yearn.Finance earned nearly $4 million in just three months.
  • YFI locked in a range between $21,000 and $30,000.

Yearn.Finance (YFI) attempted a recovery above $32,00 on December 2 only to retreat below $25,000 at the time of writing. The popular DeFi-token lost over 16% on a week-to-week basis and moved back to the 31st position in the global cryptocurrency market rating. With the current market capitalization of $748 million, YFI goes right after IOTA and Uniswap in the ranking. 

The token has been trying to settle above psychological $30,000 since the end of November to no avail so far. Each time the price moves above the threshold, traders start booking profits and push it back inside the range. 

Yearn community discloses financial results

Yearn community members prepared the quarterly report with the financial results of the project for the three months ending in October 2020. This is the first time that quarterly financials are published, including an income statement and a balance sheet.

The project received a net profit of about $3,8 million during the reported period, with over 95% of the revenue coming from the yVault product offering. The cost of revenue amounted to $212,000 and consisted of gas price used to deploy contracts and call functions for the yVaults. 

The operating expenses, money spent on administrative salaries and security, reached $303,000. Also, various contributors received grants to a total amount of $40,000. The team working on the report has marketable assets worth about $580,000 and no liabilities or accounts payable.

All in all, the financial report creates an impression of a robust business. However, the community members emphasize that the project has not been audited by a third-party professional accounting firm and should not be regarded as financial advice.

Earlier, FXStreet reported that this work has been building an empire via merges and acquisitions.

YFI on-chain metrics suggest more rangebound trading ahead

On-chain data implies that YFI selling pressure is subdued as coins supply on the exchanges remained close to September lows of around 25%. This metric is negatively correlated with the price movement and often serves as a leading indicator for an upcoming trend reversal. Said this, as the indicator stays flat and the price divergence decreases, the coin is likely to remain within the current range for the time being. 

YFI coins supply on the exchanges 

YFI coins supply on the exchanges 

Meanwhile, IntoTheBlock's In/Out of the Money Around Price (IOMAP) model confirms the state of uncertainty as the price is sitting above the substantial support area. Nearly 800 addresses previously purchased over 2,000 YFI tokens between $23,000 and $23,800. If this supply is absorbed and sell orders continue pile up, YFI will lose the ground and start a free fall towards the lower border of the recent range at $21,000.

YFI In/Out of the Money Around Price

YFI In/Out of the Money Around Price

On the upside, there is a strong resistance on approach to $25,000 as 325 addresses purchased nearly 3,000 tokens around that barrier. An even stronger resistance comes at $28,000. This barrier separates the token from another attempt to clear psychological $30,000.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Dogecoin Price Forecast: DOGE’s 50% lift-off delayed due to lack of volatility

Dogecoin price has been traversing the descending triangle formation for more than 20 days—however, the recent swing high lead to a bullish breakout. Now DOGE eyes a 50% upswing to $0.076. A decisive close above the no-trade zone will determine the meme coin’s direction.

More Dogecoin News

XRP Price Prediction: Ripple prepares for a 70% upswing

XRP price hit a local top on February 13 at $0.64, followed by a correction that pushed it down by 40%. In hindsight, this top coincided with the ascending parallel channel’s upper trendline. Now, the remittance token is preparing for another leg-up as it witnesses a spike in buying pressure.

More Ripple News

Brave to compete against Google with privacy-centric search engine

Brave new search engine aims at providing users with a good experience free of Big Tech companies. The Tailcat search engine does not collect the user's IP addresses or any other personal identification information.

More Cryptocurrencies News

Ethereum Price Prediction: ETH bulls need to tackle $1,700 before eyeing $2,000

Ethereum bulls are in full swing while attacking the $1,600 level, currently up 1.77% intraday near $1,595, amid initial Thursday. In doing so, the altcoin extends recovery moves from a one-month low, marked on Sunday. Bears will have a bumpy road on their return.

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast

BTC

ETH

XRP